Railway minister Sadananda Gowda had said the decision on rail fare hike would come before the upcoming Budget session.

SummaryNarendra Modi govt had prepared public for weeks about impending rail fare hike to reduce backlash.

PM Narendra Modi has cleared rail passenger fare hike by Indian Railways by as much as 14.2% across all classes and freight charges by 6.5%. The passenger fares were last hiked (by 20%) in January 2013,ending 10-years of status quo in rates that hit the national transporter's finances.

As for freight, the six-monthly fuel cost adjustment was reflected in rates in March 2013 and later in October. The UPA government was planning to effect further hikes in passenger fares and freight May last year, but could not do so because of the electoral code.

The new railway minister Sadananda Gowda after discussing the matter with the PM Narendra Modi, allowed the Railways to go ahead with the fare hikes,even before the Railways Budget slated for early July was presented.

Friday's freight hikes includes not only the fuel adjustment component (FAC) but additional fare increases over it, although the railways has not given a break-up. The additional traffic revenue mop-up expected is to the tune of Rs 8,000 crore.

Existing fare | Revised fare

Delhi-Howrah Rajdhani

AC 3- Rs 1514 | Rs 1728

AC 2- Rs 2197 | Rs 2508

AC 1- Rs 3813 | Rs 4354

Delhi-Mumbai Rajdhani

AC 3 - Rs 1416 | Rs 1617

AC 2 - Rs 2064 | Rs 2357

AC-1 - Rs 3567 | Rs 4073

Delhi-Chennai Rajdhani

AC 3 - Rs 1856 | Rs 2119

AC 2 - Rs 2740 | Rs 3129

AC 1 - Rs 4755 | Rs 5430

Delhi-Bangalore Rajdhani

AC 3- Rs 1924 | Rs 2197

AC 2- Rs 2864 | Rs 3270

AC 1- Rs 4989 | Rs 5697

The cement and steel and other decontrolled industries which use the railways for transportation of their products have opposed the freight hike, saying it will inflate their costs at a time when the demand in the economy is sluggish and they are experiencing severe pricing